Posted by: donmihaihai | April 15, 2013

Straco – Annual report and QUESTIONS

I am a lazy person. Usually I don’t use a pen to take down note or spreadsheet for all kind of computation while reading annual report. Reading annual report is an easy task. Usually the number just flow so do the story unless I am reading a complicated company.

If I have to pick up a pen, something is wrong. This year the candidate is Straco.

Why.

Straco is doing more of the same thing as last year. Things that I don’t like regardless of their business. It is not that the business is doing extraordinary well. It is doing well enough. Maybe it is because of being well enough which is why maybe money is leaking away from backdoor.

Anyway share price is moving upward, bees are crowding Straco. Straco is at best maybe trading at fair value. A simple question like how much money can the company generates from two aquariums with remaining lease period of 22 to 25 years. And what is the history of China government allowing extension or grant of new lease with little cost? And what is the cost of re-building aquariums of the same size in the future. Go bees, I am counting on you.

Dividends to NCI

Dividends in Cashflows statement does not tie with Statement of changes in equity. Why?

Office like Palace?

Majority of Capex was spend in Office  for last two years. Those were in China because Singapore office is getting poorer. What are these for? Is Straco adding staffs like crazy or the royal family is working in royal office.

Fishes and marine livestock

Are they super fishes? Addition is minimum and disposal is non existent.

Impairment in subsidiary, Construction in progress, unutilised tax losses and disposal of land use right

Relating to Chao Yuan Ge Development? Still unknown currently?

Other receivables

Because of accrued interest income? If not then there is a problem

Stock options

Board target is for employees of the Straco to hold up to 10% of the company by 2018. Who are these employees? 38% and 18% of all options granted went to Royal family and its gang and Royal family respectively. Shares purchased is good only when all shareholders get the benefit not when money is flowing to the small inner group.

A short post. Will talk down other companies soon.

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Responses

  1. Hi, Do you think Shanghai’s Disneyland(when it open in 2016) will reduce the number of visitors to Shanghai Aquarium drastically?Thanks.

  2. What do you think? + or -?

    • negative because they are targetting the same class of visitors-families with young kids. to remain competitive,they may have to invest more like what hongkong ocean park did, or even reduce ticket price.


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